PROVIDENCE RES. Providence Resources P.L.C. : Technical Update, Porcupine Basin

 
TIDMPVR 
 
 
   THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION 
 
   TECHNICAL UPDATE 
 
   LICENCING OPTION 16/27 
 
   PORCUPINE BASIN 
 
 
   -- PETROLEUM SYSTEMS MODELLING HIGHLIGHTS SIGNIFICANT AVALON EXPLORATION 
      PLAY 
 
 
   Dublin and London - July 17, 2017 - Providence Resources P.l.c. (PVR LN, 
PRP ID), the Irish based Oil and Gas Exploration Company ("Providence"), 
today provides a technical update regarding Licensing Option 16/27 ("LO 
16/27") which is located in the central Porcupine Basin, offshore 
Ireland and is currently operated by Providence. Following the recently 
announced farm-in transaction (ref. RNS dated June 7, 2017) with TOTAL 
E&P IRELAND B.V., a wholly owned subsidiary of TOTAL S.A., which is 
subject to the Consent of the Minister of State at the Department of 
Communications, Climate Action and Environment, the resultant LO 16/27 
joint-venture will comprise TOTAL E&P Ireland B.V. (50%, Operator), 
Providence (40%) & Sosina Exploration Limited (10%), collectively 
referred to as the "JV Partners". 
 
   On behalf of the JV Partners, Providence has recently provided the 
Petroleum Affairs Division of the Irish Government's Department of 
Communications, Climate Action and Environment with its End of Year 1 LO 
16/27 Technical Report which was focused on the hydrocarbon potential of 
the Paleocene "Avalon" prospect. 
 
   A large scale calibrated Petroleum Systems Model (PSM, c. 48,000 km(2) ), 
which included the LO 16/27 area, supports the potential of a working 
petroleum system in LO 16/27 and demonstrates that the Avalon prospect 
could potentially access a total hydrocarbon resource charge of c. 8.67 
BBO and c. 21.43 TSCF (equivalent to c. 12 BBOE). Whilst petroleum 
systems modelling in emerging frontier basins have inherently high 
degrees of uncertainty, the results of this study are directionally very 
positive for the potential charging of the Avalon prospect. 
 
   Further positive outputs from the PSM indicate that the risk of oil 
biodegradation in the Avalon prospect is low to moderate based on the 
modelled temporal variations in reservoir temperature.  In addition, top 
seal integrity for the Avalon prospect was also assessed using inputs 
from both the PSM and a parallel basin-wide geo-mechanical modelling 
study.  This work has positively demonstrated that there is a very low 
likelihood of a mechanically breached seal at Avalon based on modelled 
pore pressures. 
 
   Speaking today, Dr John O'Sullivan, Technical Director of Providence 
said: 
 
   "The work completed during the first year of Licensing Option 16/27 has 
confirmed our view as to the significant hydrocarbon resource potential 
of the Paleocene "Avalon" prospect.  Whilst the nearby 53/6-A well 
programme is currently assessing the similar-aged Paleocene "Druid" 
stratigraphic prospect, as well as the deeper Lower Cretaceous "Drombeg" 
prospect, Avalon is somewhat differentiated insofar as it demonstrates a 
potentially different trapping mechanism with structural closure mapped 
in the proximal sediment transport direction.  The proximity of Avalon 
to the deeper breached "Dunquin North" oil accumulation is also a 
potential positive in terms of hydrocarbon sourcing. 
 
   We look forward to working with our JV Partners to mature the Avalon 
prospect to drillable status." 
 
 
 
 
INVESTOR ENQUIRIES 
Providence Resources P.l.c.              Tel: [phone] 
Tony O'Reilly, Chief Executive Officer 
 
Cenkos Securities plc                   Tel: [phone] 
Neil McDonald/Derrick Lee 
J&E Davy                                 Tel: [phone] 
Anthony Farrell 
 
MEDIA ENQUIRIES 
Powerscourt                             Tel: [phone] 
Lisa Kavanagh/Peter Ogden 
 
Murray Consultants                       Tel: [phone] 
Pauline McAlester 
 
   ABOUT PROVIDENCE RESOURCES Plc 
 
   Providence Resources Plc is an Irish based Oil and Gas Exploration 
Company with a portfolio of appraisal and exploration assets located 
offshore Ireland.  The Company's shares are quoted on AIM in London and 
the ESM in Dublin. 
 
   ABOUT AVALON 
 
   Providence (80%) and Sosina (20%) were awarded Licensing Option 16/27 in 
July 2016 as part of the 2015 Atlantic Margin Licensing Round. During 
regional interpretation and mapping of vintage 2D seismic reflection 
data, Providence identified an areally extensive (c. 550 km(2) ) 
north-south orientated Paleocene basin-floor channel and fan system 
('Avalon') within the axial part of the Porcupine Basin. The Avalon 
system, which is located c. 2,500 metres below the seabed, is 
interpreted to be sourced from the north of the basin and shales out in 
a southerly distal direction. A structural flexure down to the north 
negates the requirement for sandstone pinch out in the proximal 
direction, greatly improving reservoir sealing potential. The presence 
of a thick sandstone interval is indicated by compactional drape 
morphologies which are imaged within parts of the system. The 
pre-existing Mesozoic structural grain appears to have exerted some 
control on deposition as evidenced by thickening of the system within 
pre-existing structural lows. Whilst limited seismic reflection gather 
data were available during the evaluation phase, the available data 
suggest the potential for a depth-conformant amplitude versus offset 
('AVO') anomaly similar to the nearby Druid prospect in FEL 2/14. The 
main element of the agreed work programme during the 2-year Option 
period is the purchase, reprocessing and interpretation of existing 2D 
seismic reflection data. 
 
   ANNOUNCEMENT 
 
   This announcement has been reviewed by Dr John O'Sullivan, Technical 
Director, Providence Resources P.l.c.  John is a geology graduate of 
University College, Cork and holds a Masters in Applied Geophysics from 
the National University of Ireland, Galway. He also holds a Masters in 
Technology Management from the Smurfit Graduate School of Business at 
University College Dublin and a doctorate in Geology from Trinity 
College Dublin.  John is a Chartered Geologist and a Fellow of the 
Geological Society of London.  He is also a member of the Petroleum 
Exploration Society of Great Britain, the Society of Petroleum Engineers 
and the Geophysical Association of Ireland. John has more than 25 years 
of experience in the oil and gas exploration and production industry 
having previously worked with both Mobil and Marathon Oil.  John is a 
qualified person as defined in the guidance note for Mining Oil & Gas 
Companies, March 2006 of the London Stock Exchange. 
 
   Definitions in this press release are consistent with SPE guidelines. 
SPE/WPC/AAPG/SPEE Petroleum Resource Management System 2007 has been 
used in preparing this announcement. 
 
   This announcement is distributed by Nasdaq Corporate Solutions on behalf 
of Nasdaq Corporate Solutions clients. 
 
   The issuer of this announcement warrants that they are solely 
responsible for the content, accuracy and originality of the information 
contained therein. 
 
   Source: Providence Resources plc via Globenewswire 
 
 
  http://www.providenceresources.com/html/ 
 

(END) Dow Jones Newswires

July 17, 2017 02:00 ET (06:00 GMT)

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